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What is the meaning of IPO & FPO?

Topic: Stock TradingPublished December 19, 2018

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Stock market investment is increasing in the number of people across the globe. This is the market where the shares are bought and sold. The stock is the share of the company. When the company wants capital to start or expand the business, they have some options to borrow from a bank or take capital from Venture Capital funds, in return, allotting the shares of the company or the third option is to bring the stock of your company into the market and raise money by it. It has to be repaid after taking a loan. It has to be done regularly to repay the interest. To make a profit in business, you have to repay the loss, loan instalment and interest Initial public offering (IPOs)- In such a situation, when a company's stock is traded for the first time in the market for sale, it is called an initial public offering (IPO). Every time the company does not bring its own shares,rnRather than borrowing, it is worth the company to raise money from the stock market through stock sale: they see. But why should people buy this stock? They will not get regular interest. Moreover, there is no guarantee that they will not get the money back or benefit from it. Still, people buy shares, invest a lot of money in them. Because the company in which the shares are bought by them, if the industry starts to run fast, if it starts to gain a good profit then that price of the stock will grow very well, it will increase twice or more. Then they can get profits by selling shares in this incremental stock. Follow-On Public Offerings (FPOs)- When a company's shares are traded in the market beforehand, and when the company brings more shares to the market to raise more money, it is called the follow-on public offering (FPO). For example- Power Grid was trading at Rs. 99 / - per share in the capital market in November 2010, at a face value of Rs 10, but in the same period, the company had sold more of its shares through the follow-on public offering (FPO). He had kept the price of 90 rupees. The price offered in the FPOrn

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